According to the Wall Street Journal, many restaurants in the US are still suffering from a shortage of workers, despite wages having "shot up'' 5.2% since April of last year. Adjusted for inflation, that comes to about a 1% increase. That's hardly going to create a stampede of workers looking to cash in.
What the article in the WSJ doesn't convey is the very real expense of eating out in today's economy. The tab for a couple eating at a mid-priced restaurant in Plattsburgh can easily run over $100 when you throw in a couple of drinks and the tip. Even bringing the family to McDonalds can set you back more than $50.
Restaurants come and go, but their business model is predicated on cheap and abundant labor. Paying people a fair wage and passing it on to the public will price many out of business. As I write this, there are still waiting lines of people at many restaurants in town, at least on weekends. Let's see what happens if they are forced to pay more to service the crowds.
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